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Tax amount query

leehal
leehal Posts: 161 Forumite
I have received my first months pay for this tax year and I am worse off by around £80 per month.

My tax code increased from 963L to 1060L, using my logic I am assuming I can earn more before I start to pay tax. I am therefore wondering why my tax in the month has gone up from £445 to £518 with a slight increase in National Insurance.

Is this down to the way tax is now calculated or am I missing something!?

Thanks is advance.

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    depends upon the facts which you haven't given us

    maybe post up the figures?
  • leehal
    leehal Posts: 161 Forumite
    edited 8 May 2011 at 7:32AM
    Sorry for the delay:-

    March 2011
    Code 963L
    Basic Pay £3,041.66
    Car Allowance £433.34
    Mileage £123.09 (not taxable)
    Gross £3,598.09

    Deductions
    National Insurance £329.89
    Tax £445.07

    Net Pay £2,823.13

    April 2011
    Code 1060L
    Basic Pay £3,041.66
    Car Allowance £433.34
    Mileage £132.77 (not taxable)
    Gross £3,607.77

    Deductions
    National Insurance £344.88
    Tax £518.00

    Net Pay £2,744.89
  • molerat
    molerat Posts: 35,053 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    April seems right, it looks like you did not pay tax on the car allowance in March.
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